Southern States Bancshares(SSBK) - 2024 Q2 - Quarterly Report

Financial Performance - Total assets increased to $2,572,011 thousand as of June 30, 2024, compared to $2,446,663 thousand at December 31, 2023, reflecting a growth of approximately 5.1%[9] - Total interest income for the three months ended June 30, 2024, was $41,007 thousand, up 27.3% from $32,185 thousand for the same period in 2023[12] - Net income for the three months ended June 30, 2024, was $8,198, compared to $8,756 for the same period in 2023, representing a decrease of 6.4%[14] - Comprehensive income for the three months ended June 30, 2024, was $8,266, compared to $7,803 for the same period in 2023, an increase of 5.9%[15] - Basic earnings per share for the three months ended June 30, 2024, was $0.91, down from $1.00 in the same period last year, a decrease of 9.0%[13] - Net income for the six months ended June 30, 2024, was $16,317, with basic earnings per share of $1.82, compared to $16,427 and $1.87 for the same period in 2023, indicating a slight decrease of 0.7% in net income and 2.7% in earnings per share[62] Loans and Credit Quality - Loans, net of unearned income, rose to $2,015,434 thousand as of June 30, 2024, compared to $1,884,508 thousand at December 31, 2023, marking an increase of 6.9%[9] - The allowance for credit losses was $25,828 thousand as of June 30, 2024, compared to $24,378 thousand at December 31, 2023, reflecting a slight increase of 6.0%[9] - The provision for credit losses was $1,067 for the three months ended June 30, 2024, compared to $1,557 in the same period last year, a decrease of 31.5%[13] - The allowance for credit losses as a percentage of gross loans was 1.28% at June 30, 2024, compared to 1.24% at June 30, 2023[175] - The company continues to monitor credit quality and trends in the loan portfolio segments regularly, ensuring timely identification of problem credits[80] - The total amount of special mention loans across all categories is $967,000, down from $4,980,000 in 2023[86] Deposits and Funding - Total deposits reached $2,175,678 thousand as of June 30, 2024, up from $2,018,189 thousand at December 31, 2023, indicating a growth of 7.8%[9] - Brokered deposits rose to $288,328 as of June 30, 2024, compared to $230,858 at December 31, 2023, indicating a growth in funding sources[102] - The total balance of noninterest-bearing transaction deposits decreased to $416,068 as of June 30, 2024, from $437,959 at December 31, 2023[102] Interest Income and Expense - Total interest expense increased to $19,428 for the three months ended June 30, 2024, from $12,753 in the same period last year, reflecting a rise of 52.5%[13] - Interest income increased by $8.8 million, or 27.4%, primarily due to an 18.5% increase in average loans outstanding, which rose by $310.7 million[174] - Interest expense increased by $6.7 million, or 52.3%, due to a 21.3% increase in average interest-bearing liabilities, which rose by $329.4 million[174] Noninterest Income and Expenses - Noninterest income for the three months ended June 30, 2024, was $1,368, significantly lower than $6,862 in the same period last year, a decrease of 80.1%[13] - Total noninterest expenses decreased to $11,411 for the three months ended June 30, 2024, from $13,432 in the same period last year, a reduction of 15.0%[13] - Salaries and employee benefits decreased by $1.8 million, or 22.3%, to $6.1 million for the quarter ended June 30, 2024, primarily due to one-time retirement-related expenses[183] Capital and Regulatory Compliance - The company is classified as well capitalized under regulatory standards, meeting all capital adequacy requirements as of June 30, 2024[124] - As of June 30, 2024, the Tier 1 capital ratio to average assets for Company Bank is 8.72%, while the CET 1 capital ratio to risk-weighted assets is 9.54%[127] - The total capital ratio to risk-weighted assets for Company Bank is 14.50%, exceeding the required adequacy amount of 10.50%[127] Securities and Fair Value - The total securities available for sale as of June 30, 2024, had an amortized cost of $195,770 and a fair value of $184,510, reflecting a gross unrealized loss of $11,573[63] - The fair value of derivatives in a net liability position as of June 30, 2024, was $7,733,000, which includes accrued interest but excludes adjustments for nonperformance risk[112] - The fair value of corporate debt securities was $11,433,000 as of June 30, 2024, compared to $11,259,000 at the end of 2023, showing an increase of approximately 1.5%[139]